Crazy Celebrity Insurance Policies: Taylor Swift?
Were Taylor Swift's legs insured for US$40m?
When the rumour mill churned out the sensational claim that Taylor Swift had insured her legs for a staggering US$40 million, it was a story tailor-made for the headlines. The National Enquirer was the first to break the news, and soon, the tale of Swift's supposedly insured limbs spread like wildfire across various media outlets.
The idea of a pop star insuring her legs might seem outlandish to some, but in the world of celebrity, where image is everything, it's not entirely unheard of. After all, stars have been known to take out insurance policies on their most prized assets, from vocal cords to smiles.
In 2015, Swift was at the height of her career, with her legs often on display during her dynamic performances and music videos. The notion that she might want to protect them with a hefty insurance policy seemed plausible, if not entirely logical. However, as with many tales spun by the tabloids, this one was more fiction than fact.
The claim, though entertaining, was quickly debunked. Swift's team dismissed the story, and the singer herself joined in on the joke. When her cat, Meredith, scratched her leg, Swift took to social media to quip that her feline friend now owed her US$40 million.
So.... were Beckham's legs insured?
David Beckham, the renowned footballer, had an insurance policy underwritten by Lloyd's of London, focusing specifically on his ankle bones. This coverage was crucial given Beckham's career, where his legs were his most valuable asset.
However, when Beckham suffered a ruptured Achilles tendon, which ruled him out of the World Cup, Lloyd's of London was relieved as the policy did not extend to tendon injuries, thus avoiding a substantial payout.
Lloyd's of London, known for insuring high-profile risks, had a profitable year in 2009, partly because it avoided significant claims like Beckham's. The year was marked by a lack of major natural disasters and other costly events, allowing Lloyd's to post its highest-ever annual profit of £3.87 billion, more than double the previous year's earnings.
This was also bolstered by strong investment returns as markets rebounded from the financial downturn of 2008. However, the outlook for the following year was less optimistic, with expectations of softer insurance rates and reduced investment returns
What type of insurance is this?
In the UK, professionals such as footballers and surgeons can protect their most valuable physical assets through specialised insurance policies. For athletes, this often involves insuring body parts critical to their careers, like a footballer's legs. Similarly, surgeons may insure their hands or fingers, which are essential for their profession. These types of insurance are typically part of broader personal accident or income protection policies. Personal accident insurance provides coverage for injuries that could end a career, offering financial compensation if the insured body part is damaged. Income protection insurance, on the other hand, covers lost earnings if an injury prevents the professional from working.
Lloyd's of London plays a significant role in this niche market. Known for its expertise in underwriting unique and high-risk policies, Lloyd's provides coverage tailored to the specific needs of professionals. They offer comprehensive sports-related accident and health insurance policies, ensuring that athletes and other professionals can mitigate the financial risks associated with career-threatening injuries.
**************
Make sure you check out the latest industry news and insights at InsurTech Digital and also sign up to our global conference series - FinTech LIVE 2024
**************